SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[ X ] Quarterly Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934
For the period ended September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934
For the transition period from to
Commission file number 0-16819
National Capital Management Corporation
(Exact name of registrant as specified in its charter)
Delaware 94-3054267
(State or other jurisdiction of (I.R.S.Employer Identification
incorporation or organization) Number)
50 California Street, San Francisco, CA 94111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(415) 989-2661
Former name, former address and former fiscal year, if
changed from last report
Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Securities
Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or
15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the
issuer's classes of common equity, as of the latest
practical date.
Common 1,650,524
Class Outstanding at November 20,1995
<PAGE>
PART 1. FINANCIAL INFORMATION
NATIONAL CAPITAL MANAGEMENT CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 239,508 $ 560,016
Restricted cash 402,307 215,565
Accounts receivable 2,476,844 1,820,724
Purchased insurance policies (at cost, face value
of $7,105,929 and $2,610,550 at September 30, 1995
and December 31, 1994, respectively) - current
portion 4,193,623 1,942,490
Other current assets 438,254 182,664
Total current assets 7,750,536 4,721,459
Purchased insurance policies (at cost, face value
$4,313,630 and $1,043,004 at September 30, 1995
and December 31, 1994, respectively) - long-term
portion 3,180,869 761,369
Rental properties, less accumulated depreciation of
$1,591,335 and $3,128,402 at September 30, 1995
and December 31,1994, respectively 6,768,237 8,757,784
Property and equipment, less accumulated
depreciation of $9,327 and $4,492 at September 30,
1995 and December 31, 1994, respectively 33,497 33,242
Other assets 549,827 726,880
Net assets from discontinued operations 2,116,654 1,759,055
Total assets $ 20,399,620 $ 16,759,789
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,269,193 $ 627,758
Revolving credit facility - current portion 7,683,420 1,569,190
Accrued liabilities 363,187 338,203
Current portion of long-term debt 175,654 1,248,401
Total current liabilities 9,491,454 3,783,552
Revolving credit facility - long-term portion -- 615,052
Long-term payable 100,000 150,000
Long-term debt 2,418,306 2,713,096
Total liabilities 12,009,760 7,261,700
Common stock repurchase obligation 175,000 175,000
Shareholders' equity:
Preferred stock, $0.01 par value, 3,000,000 shares
authorized, no shares issued or outstanding -- --
Common stock, $0.01 par value, 6,666,666 shares
authorized, 1,650,524 shares issued and
outstanding 17,904 17,904
Additional paid-in capital 23,117,501 23,123,951
Accumulated deficit (14,702,778) (13,604,224)
Treasury stock (217,767) (214,542)
Total shareholders' equity 8,214,860 9,323,089
$ 20,399,620 $ 16,759,789
</TABLE>
<PAGE>
NATIONAL CAPITAL MANAGEMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Three For the Nine
Months Ended Months Ended
September 30 September 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Viatical settlement
and accrued revenue $1,269,456 $ -- $ 3,103,922 $ --
Real estate properties 540,681 765,033 1,756,904 2,863,013
Interest 16,914 16,255 38,337 66,612
Other income 2,250 -- 8,563 --
Total revenues 1,829,301 781,288 4,907,726 2,929,625
Costs and expenses:
Viatical settlement
operations:
Cost of policies 1,156,146 -- 2,743,752 --
Selling and administrative 238,412 370,444 882,996 634,033
Depreciation and
amortization 81,861 -- 170,508 --
Interest 177,161 -- 409,984 --
Total viatical settlement
costs and expenses 1,653,580 370,444 4,207,240 634,033
Real estate property
operations:
Operations and maintenance 368,880 420,512 1,024,756 1,536,986
Property taxes and insurance 64,651 100,132 215,176 373,754
Depreciation and amortization 132,240 186,004 434,163 617,411
Interest 77,749 135,039 257,752 556,133
Total real estate property
costs and expenses 643,520 841,687 1,931,847 3,084,284
General and corporate:
General and administrative 279,441 335,726 783,980 954,349
Total costs and expenses 2,576,541 1,547,857 6,923,067 4,672,666
Gain on sale of real property 1,023,424 -- 1,023,424 938,500
Income (loss) from
continuing operations 276,184 (766,569) (991,917) (804,541)
Loss from discontinued
operations (3,933) (66,001) (106,637) (226,401)
Net income (loss) $ 272,251 $ (832,570) $(1,098,554) $(1,030,942)
Net income (loss) from
continuing operations
per share $ 0.17 $ (0.47) $ (0.60) $ (0.48)
Net loss from discontinued
operations per share 0.00 (0.04) (0.06) (0.14)
Net income (loss) per share $ 0.17 $ (0.51) $ (0.66) $ (0.62)
Average number of shares
outstanding 1,650,524 1,643,713 1,652,112 1,657,085
</TABLE>
<PAGE>
NATIONAL CAPITAL MANAGEMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Nine Months Ended
September 30,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net loss $(1,098,554) $(1,030,942)
Adjustment to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 604,671 682,232
Gain on sale of real property (1,023,424) (938,500)
Changes in operating assets and liabilities:
Increase in accounts receivable (598,828) (105,428)
Increase in other current assets (255,590) (72,094)
Increase in purchased insurance policies (4,670,633) (821,500)
Increase in accounts payable
and accrued liabilities 608,560 237,377
Decrease in long-term payable (50,000) __
Net cash used in continuing
operating activities (6,483,798) (2,048,855)
Net cash used in discontinued operations (357,599) (48,343)
Net cash used in operating activities (6,841,397) (2,097,198)
Cash flows from investing activities:
Additions and improvements to real property (412,739) (180,195)
Repayment of note receivable -- 938,500
Additions to property and equipment (5,090) (37,734)
Proceeds from sale of real property 1,760,000 --
Decrease (increase) in other assets 10,993 (118,926)
Net cash provided by investing activities 1,353,164 601,645
Cash flow from financing activities:
Addition to restricted cash (186,742) --
Additions to revolving credit facility 5,499,178 35,000
Purchase of treasury stock (9,675) (265,125)
Payments on long-term debt (135,036) (159,271)
Issuance of stock -- 175,000
Net cash provided by (used in)
financing activities 5,167,725 (214,396)
Decrease in cash and equivalents (320,508) (1,709,949)
Cash and equivalents at beginning of period 560,016 2,790,565
Cash and equivalents at end of period $ 239,508 $ 1,080,616
</TABLE>
<PAGE>
NATIONAL CAPITAL MANAGEMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1995 and 1994
(Unaudited)
NOTE 1
The financial information for the three and nine month periods
ended September 30, 1995 and 1994 presented in this Form 10-
QSB has been prepared from the accounting records without
audit. The information furnished reflects all adjustments
(consisting of only normal recurring adjustments) which are,
in the opinion of management, necessary for a fair statement
of the results of interim periods. The results of operations
for the three and nine months ended September 30, 1995 are not
necessarily indicative of the results to be expected for a
full year. The consolidated balance sheet as of December 31,
1994 has been derived from audited financial statements. This
report should be read in conjunction with the consolidated
financial statements included in the Company's December 31,
1994 Annual Report to shareholders on Form 10-KSB as filed
with the Securities and Exchange Commission.
Reverse Stock Split
Pursuant to the approval of the stockholders on June 28, 1995,
the Company implemented a reverse stock split which was
effective July 11, 1995, whereby each three shares of common
stock was converted into one share of Common Stock. As a
result of the reverse stock split, the Registrant has
6,666,666 shares of authorized common stock, of which
1,650,524 are issued and outstanding. All such shares are of
the par value of $.01. All per share amounts have been
adjusted to reflect the reverse stock split on a retroactive
basis.
NOTE 2
The Company has incurred recurring losses from continuing and
discontinued operations, and has invested substantial amounts
in National Capital Benefits Corporation ("NCBC") to fund
policy purchases and its operating expenses, resulting in
significant negative cash flows. In addition, NCBC is
currently in default with respect to the Interest Coverage
Ratio covenant included in its revolving line of credit
facility with Transamerica Lender Finance ("Transamerica").
NCBC is currently working to obtain a waiver from
Transamerica. Although NCBC expects to successfully resolve
this matter, there can be no assurance of the outcome.
Additionally, Transamerica has informed NCBC that the loan
will not be renewed when it expires on April 24, 1996. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
The Company has obtained cash from an officer and a member of
the Board of the Company to continue operations, including a
line of credit of $500,000 on October 26, 1995 bearing
interest at 12% per annum, payable in monthly installments of
interest only until due on January 31, 1996 or on demand
thereafter. This line of credit provides that the Company
shall not encumber, transfer or assign any of its assets,
other than in the ordinary course of business, without prior
approval. The Company had drawn $355,000 on this credit
facility as of November 20, 1995. As discussed in Note 6, the
Company sold Jensen Corporation on November 10, 1995 which
heretofore had required significant amounts of cash from the
Company to fund its operations. The Company is considering
the sale of certain other assets to provide additional sources
of cash. In order to meet the increase in policy purchase
requirements of NCBC, and to fund operating expenses, the
Company may seek additional financing through the issuance of
securities on a private or public basis, or through long or
short-term borrowings.
The financial statements do not include any adjustments to
reflect the possible future effects on the recoverability and
classification of the Company's assets or the amounts and
classifications of liabilities that may result if the Company
is unable to continue as a going concern.
NOTE 3
Purchased insurance policies are stated at cost, which
includes the purchase price, direct costs related to the
acquisition of such policies and direct costs anticipated to
be incurred through the date they can first be submitted as a
claim pursuant to an abnormal mortality stop loss reinsurance
contract. Purchased insurance policies consist of the
following:
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
Costs paid to viator $ 8,380,769 $ 2,727,596
Other direct acquisition costs 670,848 308,748
Less amortized costs (1,677,125) (332,485)
7,374,492 2,703,859
Less current portion 4,193,623 1,942,490
$ 3,180,869 $ 761,369
</TABLE>
NOTE 4
The Mart Shopping Center. On July 28, 1995, the Company sold
The Mart Shopping Center ("the Mart") located in Hillsboro,
Oregon to an individual affiliated with NCM Management Ltd., a
company which provides management services to the Company.
The sale proceeds included $960,000 in cash, an eighteen month
note secured by a second deed of trust on the property in the
amount of $910,000 and the buyer's assumption of the
$1,232,501 first deed of trust secured by the property for a
total purchase price of $3,102,501. The Company renegotiated
payment of the note with the purchaser whereby it received a
total of $800,000 in exchange for an early payoff on September
30, 1995, reducing the sale proceeds by $110,000.
The operating results of the Mart are included in the
Company's consolidated statements of operations. Revenues of
the Mart were $287,543 and $394,349 for the nine months ended
September 30, 1995 and 1994, respectively. During the same
periods, expenses were $300,434 and $285,451. The Mart had an
operating loss of $12,891 for the nine months ended September
30, 1995 and operating income of $108,898 for the nine months
ended September 30, 1994.
Summarized below are the pro forma results of operations of
the Company assuming that the Mart had been sold as of January
1, 1994.
<TABLE>
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
Total revenues $ 4,620,183 $ 2,535,276
Total costs and expenses 6,622,633 4,387,215
Gain on sale of
real properties -- 938,500
Loss from discontinued
operations (106,637) (226,401)
Net loss (2,109,087) (1,139,840)
Net loss per share (1.28) (0.69)
</TABLE>
The pro forma financial information presented above is not
necessarily indicative of either the consolidated results of
operations that would have occurred had the disposition taken
place at the beginning of the periods presented or of future
results of operations of the consolidated companies.
The Company recognized a gain of $1,023,424 on this
disposition in the third quarter of 1995. The Company
believes it will not incur any material Federal or State
taxes, as the gain will be offset by current operating losses
and net operating loss carryovers.
NOTE 5
Redbird Trails Apartments and North Oak Apartments. On June
13, 1994 and December 8, 1994, in accordance with its previous
agreement dated December 30, 1993, the Company sold
partnership interests in Redbird Trails Associates, L.P. and
Signature Midwest, L.P., respectively, to a new unrelated
limited partner and administrative general partner. These
partners, which are related to each other, obtained a 99.1%
interest in the existing equity, profits or losses and low
income housing tax credits of the properties owned by these
partnerships for an investment of approximately $1,256,000 and
$769,000 in each partnership plus a $100,000 expense
reimbursement of which the Company received $847,000 during
1994, net of $440,000 paid to an original limited partner for
all its interests and claims. The balance of the funds due
was received by the Company during March 1995. A gain of
$1,203,358 was recognized on these transactions in 1994.
NOTE 6
Discontinued Operations - Jensen Corporation. On November 10,
1995, the Company sold 100% of the common stock of a wholly-
owned subsidiary, Jensen Corporation ("Jensen"), located in
Fort Lauderdale, Florida to AMKO USA, Inc. ("AMKO"), an
affiliate of AMKO International B.V. which is based in The
Netherlands, for $1,726,000. No significant gain or loss is
expected to be recognized on this transaction. The sale
proceeds included cash of $415,000, which was loaned to Jensen
along with an additional $350,000 in the form of a $765,000
note, $500,000 of which was prior to the sale and $265,000
which was immediately after the sale, and a promissory note
receivable in the amount of $1,311,000 which is secured by
Jensen's stock, accounts receivable and inventory. The
$1,311,000 note is guaranteed in its entirety by AMKO
International B.V., and the sole shareholder of AMKO
International B.V. guaranteed the first $585,000 of principal
payments.
AMKO also agreed to assume the obligations of the above
$765,000 note and an intercompany balance payable by Jensen to
the Company of $337,650, which are secured by the assets of
Jensen. These assets also secure the $1,311,000 promissory
note. The first $765,000 of principal payments under these
notes are guaranteed by AMKO International B.V.
The Company believes that the assets securing the three notes,
and the operations of Jensen as they now exist, are not
sufficient to provide for payment of the notes. The Company
has limited financial information concerning AMKO and the
guarantors of the notes. Consequently, no assurance can be
given that the principal or interest due on the notes will be
realized.
The $1,311,000 note bears interest at 2% over the prime rate
per annum and is payable in varying installments with the
balance due on June 1, 1997. The $765,000 note bears interest
at 10% per annum and is payable in varying installments with
the balance due on February 1, 1998. The $337,650 note bears
interest at 2% over the prime rate per annum and is payable in
varying installments with the balance due on May 1, 1997.
The results of Jensen, previously described in the
consolidated statements of operations as the Industrial
Products Division, have been reported separately as
discontinued operations in these consolidated statements of
operations. Prior period financial statements have been
restated to present the Industrial Products Division as a
discontinued operation. Revenues of Jensen were $3,438,928
and $4,175,482 for the nine months ended September 30, 1995
and 1994, respectively. During the same periods, expenses
were $3,545,565 and $4,401,883, resulting in an operating loss
of $106,637 and $226,401, respectively.
Summarized below are the pro forma results of operations of
the Company assuming that Jensen had been sold as of January
1, 1994.
<TABLE>
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
September 30, 1995 September 30, 1994
<S> <C> <C>
Total revenues $ 4,985,630 $ 3,102,495
Total costs and expenses 6,923,067 4,672,666
Gain on sale of
real properties 1,023,424 938,500
Net loss (914,013) (631,671)
Net loss per share (0.55) (0.38)
</TABLE>
Pro forma adjustments have been made for interest income
attributable to the notes receivable from AMKO in the amount
of $77,904 and $172,870 for the nine months ended September
30, 1995 and 1994, respectively. The pro forma financial
information presented above is not necessarily indicative of
either the consolidated results of operations that would have
occurred had the disposition taken place at the beginning of
the periods presented or of future results of operations of
the remaining consolidated companies.
The components of the Industrial Products Division net assets
from discontinued operations in the consolidated balance sheet
as of September 30, 1995 and December 31, 1994, are as
follows:
<TABLE>
<CAPTION>
As of As of
September 30, 1995 December 31, 1994
<S> <C> <C>
Accounts receivable $ 1,022,564 $ 853,882
Inventories 2,159,412 1,717,361
Accounts payable and
accrued liabilities (1,165,946) (927,802)
Other, net 100,624 115,614
$ 2,116,654 $ 1,759,055
</TABLE>
<PAGE>
NATIONAL CAPITAL MANAGEMENT CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
The following discussion is supplemental to and should be read
in conjunction with the Company's December 31, 1994 Annual
Report to shareholders on Form 10-KSB as filed with the
Securities and Exchange Commission, and the financial
information and accompanying notes beginning on page 1 of this
report.
FINANCIAL CONDITION AND LIQUIDITY
The Company's cash decreased from approximately $776,000 at
December 31, 1994 to $642,000 at September 30, 1995
principally as a result of $925,000 used to finance operating
activities, $1,680,000 used to support the viatical settlement
business and $563,000 to finance Jensen Corporation's
operations prior to its disposition, offset by the receipt of
$1,253,000 in March 1995 pursuant to the admission of two
unaffiliated partners into Redbird Trails Associates, L.P. and
Signature Midwest, L.P., the receipt of $1,722,000 in the
third quarter from the sale of The Mart Shopping Center and
the receipt of an earnest money deposit of $100,000 in
September 1995 in connection with the sale of Jensen
Corporation. Of the $642,000 in cash at September 30, 1995,
$402,000 has been restricted for use by the Viatical
Settlement Division pursuant to the existing revolving line of
credit agreement as discussed below. The Company's cash
position decreased to approximately $397,000 as of November
20, 1995, of which approximately $367,000 is restricted for
use in the Viatical Settlement Division. This decline
resulted from $400,000 used to support the viatical settlement
business and $564,000 used to finance Jensen Corporation's
operations, offset by the receipt of $355,000 from a line of
credit provided by an officer and a member of the Board of the
Company discussed below and $315,000 in additional earnest
money received for the sale of Jensen Corporation.
The Company has incurred recurring losses from continuing and
discontinued operations, and has invested substantial amounts
in National Capital Benefits Corporation ("NCBC") to fund
policy purchases and its operating expenses, resulting in
significant negative cash flows. In addition, NCBC is
currently in default with respect to the Interest Coverage
Ratio covenant included in its revolving line of credit
facility with Transamerica Lender Finance ("Transamerica").
NCBC is currently working to obtain a waiver from
Transamerica. Although NCBC expects to successfully resolve
this matter, there can be no assurance of the outcome.
Additionally, Transamerica has informed NCBC that the loan
will not be renewed when it expires on April 24, 1996. These
factors raise substantial doubt about the Company's ability to
continue as a going concern.
The Company has obtained cash from an officer and a member of
the Board of the Company to continue operations, including a
line of credit of $500,000 on October 26, 1995 bearing
interest at 12% per annum, payable in monthly installments of
interest only until due on January 31, 1996 or on demand
thereafter. This line of credit provides that the Company
shall not encumber, transfer or assign any of its assets,
other than in the ordinary course of business, without prior
approval. The Company had drawn $355,000 on this credit
facility as of November 20, 1995. As discussed in Note 6, the
Company sold Jensen Corporation on November 10, 1995 which
heretofore had required significant amounts of cash from the
Company to fund its operations. The Company is considering
the sale of certain other assets to provide additional sources
of cash. In order to meet the increase in policy purchase
requirements of NCBC, and to fund operating expenses, the
Company may seek additional financing through the issuance of
securities on a private or public basis, or through long or
short-term borrowings.
The note payable of approximately $1.1 million secured by
Appletree Townhouses was due on October 1, 1995. The lender
has agreed to extend the loan under the same terms to December
31, 1996.
In February 1995 the Company initiated a plan to repurchase up
to 250,000 of its own shares for treasury in the open market
or through isolated transactions to December 31, 1995. 10,000
shares were purchased pursuant to this plan on May 11, 1995 at
a cost of $9,675.
RESULTS OF OPERATIONS
Consolidated revenues increased approximately $1,048,000 and
$1,978,000 for the three and nine month periods ended
September 30, 1995 from the three and nine month periods ended
September 30, 1994, respectively, as a result of the addition
of the viatical settlement division totaling approximately
$1,270,000 and $3,104,000, for the three and nine months ended
September 30, 1995 and a slight increase in real property
operating revenues from the Georgia properties, offset by
approximately $280,000 and $1,177,000 for the same periods, in
connection with the loss of operating revenues associated with
the sale of partnership interests in Redbird Trails
Associates, L.P. ("Redbird") and Signature Midwest, L.P.
("Signature") and the sale of the Mart. Total costs and
expenses increased during the three and nine month periods
ended September 30, 1995 from the three and nine months period
ended September 30, 1994 by approximately $1,029,000 and
$2,250,000, respectively, primarily as a result of the costs
related to the operations of the Viatical Settlement Division
totaling approximately $1,283,000 and $3,573,000 for the same
periods and a slight decrease in real property operating
expenses from the Georgia properties, offset by the sale of
partnership interests in Redbird and Signature and the sale of
the Mart totaling approximately $215,000 and $1,086,000 for
the same periods.
VIATICAL SETTLEMENT DIVISION
NCBC commenced operations on March 17, 1994. As of October
31, 1995, NCBC had purchased, at face value, approximately $14
million of policies. During the nine months ended September
30, 1995, $1,013,000 of policies matured. These policies had
related direct costs of $811,000 and a corresponding gross
profit of $202,000. Additional gross revenues of $1,940,000
and related direct costs of $1,801,000 were accrued pursuant
to NCBC's policy to recognize such revenue and costs over the
period from purchase of the policy to the date on which the
company may file a reinsurance claim. NCBC had operating
expenses of approximately $913,000 for the nine months ended
September 30, 1995. These expenses consist primarily of wages
and benefits, advertising, physician and professional fees,
and other office expenses.
REAL ESTATE DIVISION
Rental property revenue decreased principally as a result of
the sale of partnership interests in Redbird on June 13, 1994
and Signature on December 8, 1994 and the sale of the Mart on
July 28, 1995, offset by a slight increase in revenue from the
remaining properties totaling approximately $37,000 and
$73,000 for the three and nine months ended September 30,
1995. Occupancy at Appletree Townhouses has remained constant
with an average of approximately 91% for the first three
quarters of 1995 and 1994. Average occupancy at Colony Ridge
Apartments increased to 87% in the first three quarters of
1995 from 81% in the first three quarters of 1994. Current
occupancy is 91%. The decrease in total operating and
maintenance expenses of approximately 12% and 33% during the
three and nine months ended September 30, 1995, respectively,
compared to the same periods in 1994 is principally related to
the sale of partnership interests in Redbird and Signature and
the sale of the Mart. Property taxes, interest expense,
depreciation and amortization decreased during the same period
as a result of the sale of partnership interests in Redbird
and Signature and the sale of the Mart. Real estate property
operations, as a whole, produced operating losses of
approximately $103,000 and $175,000 for the three and nine
months ended September 30, 1995 compared to $76,000 and
$221,000 for the same periods in 1994, after all operating
expenses, including depreciation and interest expense.
INDUSTRIAL PRODUCTS DIVISION
The Industrial Products Division was sold on November 10, 1995
and has been classified as discontinued operations in the
consolidated statement of operations.
Signatures
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
NATIONAL CAPITAL
MANAGEMENT CORPORATION
Date: November 20, 1995 By:/s/ Herbert J. Jaffe
Herbert J. Jaffe
President
By:/s/ Leslie A. Filler
Leslie A. Filler
Principal Financial Officer and
Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AND CONSOLIDATED STATEMENTS OF OPERATIONS IN FORM
10-QSB FOR THE PERIOD ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 239,508
<SECURITIES> 0
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0
0
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</TABLE>
